[ad_1]
Amwell is in talks to accumulate struggling teletherapy firm Talkspace for about $200 million, based on Israeli business publication Calcalist.
Talkspace’s inventory worth surged within the wake of the deal rumors. It went public in 2021 after a merger with a particular goal acquisition firm, opening at $8.90 per share. The deal valued Talkspace at $1.4 billion.
However the digital psychological well being firm’s fortunes have slowed since its debut on the general public markets. Earlier this month, Talkspace received a letter warning that it could possibly be delisted from Nasdaq, since its inventory had closed under the minimal $1.00 per share for 30 consecutive enterprise days.
It reported an $18 million net loss within the third quarter, in contrast with a $2 million loss within the prior-year interval, because the teletherapy firm continued to shift its focus towards business-to-business gross sales from a consumer-facing mannequin.
Talkspace additionally lately introduced it had appointed a brand new CEO, Dr. Jon R. Cohen, who has served on the corporate’s board since September. Talkspace’s cofounders Oren and Roni Frank stepped down from their roles a couple of yr in the past. Its COO left shortly after, following an inner overview of his conduct “in reference to an organization offsite.”
This is not the primary potential deal for Talkspace this yr. Searching for Alpha reported this summer that Talkspace had declined an earlier buyout deal from Amwell, and Axios Pro wrote that outpatient supplier Mindpath Well being had additionally approached the teletherapy firm.
Each corporations declined to touch upon the Amwell acquisition rumors.
THE LARGER TREND
Whereas quite a lot of well being tech and digital well being startups hit the general public markets final yr, usually utilizing SPACs, the market slowed to a halt in 2022 amid a contracting financial atmosphere.
In keeping with a report by Rock Health, merger and acquisition exercise dropped within the second quarter this yr, however picked up a bit in Q3, at the same time as bigger digital well being funding dropped off. The report famous M&A might look extra interesting in contrast with unfriendly non-public and public markets.
[ad_2]
Source link
